// Arcadia wins majority of its creditors’ approval for 7 CVAs
// Lady Green will invest £50 million into the group
// Arcadia agrees with the pension fund to reduce its contributions from £50m to £25m per year
Arcadia Group has announced that its CVAs have been approved by the required majority of creditors.
Arcadia’s pension trustees, suppliers and landlords attended the company’s second creditor meeting today to discuss the group’s seven separate CVAs.
Arcadia owner Sir Philip Green’s wife Lady Green, has agreed to invest £50 million into the group as long as it means there will be no risk of legal challenge to the CVA.
Following the meeting, Arcadia has not revealed the number of creditors that have voted in favour of the CVA.
The group was advised by property consultancy GCW to take out a CVA, which would ultimately result in 23 store closures and rent cuts on nearly 200 stores.
Arcadia has agreed with the pension fund to reduce its contributions from £50 million to £25 million each year.
“After many months of engaging with all our key stakeholders, taking on board their feedback, and sharing our turnaround plans, the future of Arcadia, our thousands of colleagues, and our extensive supplier base is now on a much firmer footing,” Arcadia chief executive Ian Grabiner said.
“From today, with the right structure in place to reduce our cost base and create a stable financial platform for the Group, we can execute our business turnaround plan to drive growth through our digital and wholesale channels, while ensuring our store portfolio remains at the heart of our customer offer.
“I am confident about the future of Arcadia and our ability to provide our customers with the very best multi-channel experience, deliver the fashion trends that they demand, and ultimately inspire a renewed loyalty to our brands that will support the long-term growth of our business,” he said.